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October 21 - 31, 2009


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Contributors Say

(Quotes from Ed in Red)

Ed Says

Saturday, October 31, 2009



Hi Ed,

Thank you for your support and for mentioning Breathwork. I notice that the sensations I experience recently relate to breathing and shortness of breath. I wonder if my former nicotine habit is an attempt to recapture the same sensations that I remember from my illness at a critical period in my childhood. I wonder if Breathwork can help me integrate these experiences.

I notice two objections come up in my mind when I think about Breathwork. One is an unpleasant memory of a hyperventilation incident when I am 18; I'm not sure I want to repeat that experience. The other is the time commitment--I am unclear on how long the whole process takes, with the prep work.


I wonder if you can share a typical schedule for a Breathwork weekend.

I am planning to host a Breathwork Weekend in Incline Village, starting

Friday, December 4, 2009. 

See the link to Breathwork, above.

Saturday, October 31, 2009


Workshop Follow-Up - Personal Trading Account

Dear Support Group,

I commit to have a personal Futures trading account of USD $2 million by the end of calendar year 2010.

I then begin (in January 2011) to trade my suite of five(5) trend following systems on a diversified group of up to 40 futures markets risking no more that 0.4% of my account value on each system with no more than 50% total heat on the entire account.
(i.e. 10% per system)

I follow my systems, I take my trades, I do the right thing ---ALWAYS!

For the sake of further clarification, I employ the following definitions;

a) Total account Value=Total open account value less total value of account at risk .

b) Total heat=Total account value at risk at this given moment.

c) The max. number of different markets I can ever be in at any one time without exceeding my heat parameter is 25 (i.e. 25x0.4%x5 systems = 50% heat). - That is, 25 markets max. out of a possible universe of 40 markets.

I’m open for all and any support for my commitment , including help, comments, criticisms, feedback, directions or whatever.

Be kind with your commentary or be brutal & cruel, it all helps.

I am willing to send a monthly report detailing my progress of what steps I make & take to realize this goal. I also detail my feelings & thought processes regarding the above.

I send this report to all my Support team sometime during the first week of each month until year end 2010.

Thank you all, in advance, for your help & support.

Prorsum et Sursum (onward and upward)

p.s. I already have some strong (& some weird/crazy) feelings coming up the above.

That, however, will wait until my Nov. 2009 update together with details on the gap that currently exists between my current account size and my target account size.

Thank you for sharing your process.

Saturday, October 31, 2009


EcoNowMics Book Feedback

Hi Ed,

Thank you for the recent workshop, and for your helping me achieve my commitment. I support your work on EcoNowMics. I am not clear on your
intentions of this project. I notice several components in it. I am not sure how they fit together.

One part seems to revolve around integral calculus, System Dynamic models and numerical simulation, and a search for what you refer to as
a "killer app" for them.

Another part is euphemistic. You talk about how the government is in the process of proving that it has a bigger deck than business. I hold that an argument about who has the biggest deck is, ultimately, about who is the biggest deck. I notice surprise at your own entry into this competition, humorous as it is.

A third part is apocalyptic. You talk about German hyperinflation, debasement of the dollar, rampant consumerism, budget and trade deficits and how blind politicians and the public are to the problem.


I notice similar sentiment from religious authorities--Al Gore and St. Paul ("the wages of sin is death; but the gift of God is eternal life") are accessible examples. The image that forms in my
mind is the third horseman. I note my own tendency to correlate government growth with war, which the second horseman represents.

I see educational value in all of these aspects of your work, and I support you in pursuing each of them. I am not clear on how they gel into a single project. Regardless of my lack of clarity, I commit to proof-reading chapter as you make them available.

Thank you for your support and for sharing your insights.

Saturday, October 31, 2009


Positive Intention of Regret


Dear Ed,

I start with a feeling of regret that is fresh in my mind. A whipsaw.


My four year old son hurts himself on the side of a table while I leave him unattended. I want to go back to the (non-existing) past and change things. I feel responsible and disappointed for not knowing better.

The tribe encourages me and I start going into my forms. Soon, I begin to chant "You should have known better ... You should have known better ... You should have known better!", while pointing my finger in the air. I feel small, afraid, immobile.

The tribe continues to encourage me and my forms become stronger and morph towards displays of anger. Soon I am chanting "Its not my fault! Its not my fault! Its not my fault!". As the forms intensify. I start enjoying it all.

When the tribe and I feel that my forms are complete, we re-integrate. I am sitting with a peaceful feeling. I am enjoying the experience of the tribe process, and my insight. "Mistakes" are a part of the learning process and that if I am on a journey - I must take the "bad" with the "good" on the path. Being on the path of a trader means experiencing whipsaws from time to time, being a father means feeling helpless when a child learns from his own mistakes.

I am in [City] some days later and my car is towed. I see "No parking on Mondays" (the small sign below that I miss reads no parking on Saturdays). Its a Saturday. I continue to enjoy the beautiful morning, taking a leisurely stroll through the still quiet streets, pick up a nice croissant and a fresh orange juice as I walk and take a tram to where the car is being kept. I happily pay the exorbitant charges and thank the attendant for keeping the car safe. Its all part of enjoying life in this wonderful city.

I decide to write about my experiences on the hot seat to FAQ. I have now experienced five hot seats. As I draft this e-mail with pen and paper, my insight crystallizes further.

The positive intention of regret is to make us aware of a risk on our chosen path. Fully experiencing regret allows us to either accept this risk as part of the path - or choose a new path.

Thank you for sharing your process - and your insights.



In the TTP Model


we hold that all feelings

have positive intentions













Clip: http://www.psychologytoday.com/



Friday, October 30, 2009


Likes New Directions

Hi Ed,

I like your new work on the website.

Thank you for your support.

Friday, October 30, 2009


20-20 HindSight




Yu might like this cartoon.  I think it is true even in stock markets !!


People who rely on hindsight, might consider trying to drive a car using only the rear-view mirror.



This Fixture Provides Everyone


with hindsight

(a clear rear view).



Clip: http://hackedgadgets.com/2006/



Thursday, October 29, 2009


Starting a Fund


Our meeting today is a great learning experience for me as we outline steps for moving forward with my fund. Immediately, Ed notices how I present myself and the way I respond to questions. Ed emphasizes the importance of first impressions, speaking with power, clarity, and body language.

We review the letter and pro-forma expense sheet I send my investors. Ed points out many mistakes I make in writing my letter and ways to improve for next time.


We talk about the j-curve and the importance of ensuring adequate start-up capital to get through the development stages without investors pulling out or the need for additional capital. From this, I realize I require much more detail in my reporting. I must show all appropriate financial information in a effective and transparent manner. Ed also mentions I must make it clear how these profits will be distributed to shareholders.

Ed discusses the importance of building on top of a solid foundation for system design. Starting with a simple system, then layering onto it to develop a final product.

My To Do List:
1) Monthly pro-forma statements from now until the end of 2011
2) Presentation (playing the part of a fund manager and displaying confidence)
3) Clarify agreements (what are the roles of the shareholders, how much capital are they providing, and what they get in return)
4) System development (start with a robust platform and add layers)
5) Letter to shareholders (ensure the group tells everyone they know about the fund and assists in raising capital)
- How much capital can we raise?
6) Work on drafting an initial shareholder agreement (outline aspects including: shareholder rights, conditions, entitlements, termination clauses, etc.)

Thank you Ed for taking the time to meet with me today. While I feel some confusion now, I am committed to this project and will do everything I can to make it a success. I appreciate your ongoing support and willingness to work with me. I will be in touch with you soon.

Good work !

Thursday, October 29, 2009


Phoenix Tibe

Please accept the attached listing for a new tribe in Phoenix.


I welcome any further info on tribe resources you can recommend beyond the FAQ's etc.






Thursday, October 29, 2009


Re-Feeling the System


Dear Ed,

Thank you all again for volunteering to be on my support team.


My commitment is to follow my stops on my winning trades as strictly as I do on my losing trades.


However, before I can do that I must get clear on my irrational actions on taking profits (which in the past was way too early due to fear).


Therefore, I have suspended trading while I rethink, retest and "re-feel" my entire system.

Thank you for your support!


Thursday, October 29, 2009


Illusion of Knowledge

Hello Mr. Ed

The attached graph is intriguing as is this thought from John Mauldin:

“The illusion of knowledge is the tendency for people to believe that the accuracy of their forecasts increases with more information. So dangerous is this misconception that Daniel Boorstin opined, "The greatest obstacle to discovery is not ignorance-it is the illusion of knowledge." The simple truth is that more information is not neces­sarily better information. It is what you do with it, rather than how much you have, that matters."

With best regards


Wednesday, October 28, 2009


Doing the Math

Yesterday, Ed poses the problem


x^2 = 2^x


and asks me to solve the equation for "x". When I receive the problem, the first thing I do is look at the structure of the problem and re-arrange the equation to get "x" on one side of the equal sign. To do this, I use the log rule for exponents:

x^2 = 2^x
2*log(x) = x*log(2)
By re-arranging the equation I obtain:
x / log(x) = 2 / log(2)

When I get to this point I am stuck as I don't know what the graph for x / log(x) looks like and I feel frustration.


A few minutes later I walk away with feeling disappointment in myself. Then, I have an "aha" moment and notice how simple the answer is.


Obviously the solution is x=2 since 2^2 = 2^2 = 4. I can't believe I overlook such a simple solution and feel dumb, but happy to find the answer.

I tell Ed I have the solution... x=2. It's such a simple problem, I think to myself, why do I try to make is so complicated.


Ed replies "I wonder if that's your final answer".


When Ed says this, I wonder if he is testing my confidence in answering a simple problem or if there is something deeper to his response.

I do a few trials in my head to see if I can find any other solutions. If x=1 it doesn't work, if x=2 it does work, if x=3 it doesn't work, if x=4 it does work, if x=5 it doesn't work. I feel a pattern may be occurring so I decide to go back to where I leave off originally and try graphing the function F(x) = x / log(x).

From the graph I observe that "ln" of a negative number is undefined so the only solutions occur when x is > 0 -- when x=2 and x=4. (These are the values which result if F(x) equalling 2 / log(2) (which is ~2.885).

I figure this must be the correct answer as I rule out negative values of "x" and find what I feel is the correct solution. I email Ed again, as I am now confident in my solution and say thank you for the exercise.

Ed's response is not what I expect at all! He responds "You might consider preparing graphs for x^2 and 2^x by simulation in Excel and then looking for intersections."

When I read this, I wonder if he looks at my previous response (since I feel the answer is clearly explained).


But just for fun, I decide to build a table in excel to show the interactions of the equations. I quickly realize from the this simple exercise that there is in fact a negative value of "x" that solves the equation. So I now find there are three solutions: x=0.76666, x=2.00000, & x=4.00000. (although in my response I accidentally miss the row x=0.76666 and respond with x=0.76665). I now feel at peace when Ed responds, "Good Work".

From this exercise, I learn the power of simplicity. By plotting out a simple table of values and outputs ("x", "x^2", "2^x") for different values of "x", I quickly gain a great deal of knowledge of how the numbers interact without the use of complex equations. When doing this, the answer shows up right in from of my nose.

Thank you Ed for this great learning experience!

Thank you for sharing your process.


Casting the problem from derivative calculus to numerical simulation provides a straightforward solution - and one you can readily understand.


In my EcoNowMics work, I am, similarly, re-casting economic theory from obscure calculus into simulation models.

Wednesday, October 28, 2009


EcoNowMics Feedback

Dear Ed,

Thank you for yet another highly educational and uplifting workshop. I feel fortunate to be part of it. The 4 day format is excellent. It offers opportunity for more tribe sessions and interaction among participants.

I commit to actively support you on your EcoNowMics project. I commit to proof read your materials and offer feedback promptly.

I read the sample page of the EcoNowMics FAQ. The last but one sentence in the response section to item 1: ...Hyperinflation is a large rate of either money growth of price increase. I think you mean "or".

The organization of the original TTP FAQ is a classic and I think that is an excellent approach that may fit well with this FAQ too.

Thank you for your gifts.

Thank you for your support and for the catch.

Wednesday, October 28, 2009


Writing the TTP Workshop Disclaimer in SVO-p

Hi Ed,

I am finished converting the disclaimer to the present tense, and am now reviewing the document for proper SVO structure. The project is progressing well and I am gaining some interesting insights into the English language. I intend to provide you with a report of my findings, as well as the completed project, by the end of the week.

Thank you again for a great workshop!

Thank you for your contribution.


Re: finished and completed: you might consider: I now have the document in present tense ... and ... I intend to send you the complete SVO-p revision on Friday.


Wednesday, October 28, 2009


Getting Off Day-Trading

Dear Ed,

First I want to say that right after the last report I did make progress on my big wave. One area of progress is position size. I reprogrammed and expanded a position size engine that I previously developed.


Another is moving my system development work from Trade Station 2000i to Trade Station 8. These both went very well as I recall. However when I start working with Trade Station 8 I notice I can use all sorts of intra-day data. I go off on a tangent and start testing 30 min bars and 15 min bars. This adds to my resistance to send an update. At this same time I decide to trade short term for a number of reasons that seemed sound at the time. I borrowed money to add to my account to really make it go up big. To do this I did not use any system, just me looking at charts.

The testing produced a system that works on some things and not others and none of it well enough for me to want to trade it. The short term trading started out great and ended horrible. How did I do it? I traded without stops and I added to positions as they went against me at the points I said I would get out. This is a familiar pattern, I get the idea that I can trade short term and run my account up to an unknown level that I can then trade with a long-term trend system. I have this idea my current account is at a level to small to use for trend following and more frequent trading could build the account as I have a memory of doing. I seem to remember run-ups and forget draw-downs.

This trading stuff is all I do during the day for the last 11 years. I remember some nice runs and manageable draw-downs and returns to new equity peaks, with many trades over the years. There is a long period I remember of profits. Recently it is not profitable at all and this current episode has left me feeling beaten. I want to send this update as a record and to admit that I have some serious issues. One issue is all I do is trade; the only way I have to make money is trade. That seems to be the way I lose money in the current moment of now. I feel like I am in a trap, I have no way to pay the bills and I have only done trades and trade station code for 11 years. I seem to be addicted to short term trading and watching the market, win or lose I seem to get what I want.

Also, I seem to feel fear about my big wave. What do I fear? I feel I will have to give up control and let a system do the trades. If I have clients they will judge me.


(Ed already commented: I wonder where you get the idea that what others think of you is any of your business. You might consider taking you feelings about <judgment> to Tribe.)


I will have to explain to them why my results do not match this or that. If I have a business it will take over my life and I will lose freedom. There is so much about the business side that I do not know. I do not want to deal with government regulations. I do not have enough money to start a business

So what am I feeling right now? I feel tightness in my chest and pain in my back and it is overwhelming. I want to breath deep and can’t. My head is pounding and my neck feels like a racetrack that cars are speeding over. I have strange antsy feeling in my legs and butt that makes it difficult for me to sit still. I get up frequently and walk around and look for something else to do then I come back to my PC and look at a destabilizing and debilitating loss.

What am I thinking right now? I am a fool. I am wasting my life. I have 11 years into this and am financially worse than when I start. Am I really useless? I am feeling so much and it is so intense that I do not know what it is, except that it is familiar. This has to be the result of some feeling I am not willing to feel. I am setting all of this up and then feeling it so intensely that I can’t even tell what it is that I feel.

I do not know what I am going to do now or if I am even in a state to decide.

Thank you all for supporting me and being there.

Thank you for sharing your process.


You might be getting ready to examine finding some right-livelihood for yourself - something you can do to serve others.







Questions About the Meaning of Life


seem to melt away


in the process of serving others.








Clip: http://bdawson13.files.wordpress.com/



Wednesday, October 28, 2009


Getting Into Balance


Dear Ed,

The day after I return from Reno I compile a personal balance sheet. For some months I resist taking stock of my actual account balances. I hide behind "I know roughly where I'm at."


As I look up individual account statements, I notice getting very sleepy. I wake up at my desk. I reflect on the force of my resistance. I think, this must be what addicts go through. I want to say, "my name is [Name] and I am an addict."


I notice I am OK with this admission. I total up the
numbers and notice that my balance is not far off my rough estimate. My rough estimate is slightly conservative. I wonder what am I hiding from myself if it isn't the balance. I wonder if I'm though with denial and if I can expect bargaining next.

I notice feeling shame and sadness about my balance. I notice a gap between my image of myself as a talented, high-paid engineer and my failure to accumulate wealth.

I show the detailed balance sheet to my wife. I ask her to be on my support team. I reiterate to her that I am the one who's responsible for our financial stability, but I want her support in experiencing my feelings. She agrees.


We talk about our feelings and our goals. We cry a lot. We laugh a lot. I feel like the luckiest man alive for having her and her support.

Thank you for sharing your process - and your commitment to provide for your family.




Family: The Essential Tribe







Clip: http://www.concurringopinions.com/



Tuesday, October 27, 2009


Wants the Book


Thanks again for the wonderful TT Workshop. I accomplish all my goals at the workshop. The results where as I envision, but the path is something I do not imagine.


At the workshop, I do not have a chance to get recommended book list from you about creating a winning trading systems. My goal is to better understand vocabulary, theory, and the process of creating a trading systems. I understand the rules of FAQ about not endorsing any products, so I do not know how to get the list. Please let me know what avenue you recommend going down to get one.

You might consider reading some of the basic texts by the likes of Kaufman, Schwager and Colby - and then doing your own back-testing.




Your Trading System Comprises Your Mind...




... and Your Heart




Clip: http://www.ximnet.com.my/thelab/






Tuesday, October 27, 2009


Double Aha

Hi Ed,

I have two AHA's today:

A trading system with rules that are 99% precise and 1% ambiguous, is 100% Fred's Playground.

If time doesn't exist, timing doesn't exist.

Thank you for sharing your AHA's.

Monday, October 26, 2009


Processing the Stuckies

Dear Ed,

In the past few weeks I make progress with the TSP exercises. I put off the Exponential Crossover System for a while but I finally start working on it a few weeks ago. I get stuck very early on in the exercise, I can't even match the ATR or Slow and Fast Lag calculations to the sample run. I get very frustrated and I cannot figure it out. I initially think that this failure validates my reluctance to work on backtesting.

A few days later I take the feeling of being stuck as an entry point on the hot seat. I work through various forms and get the chance to experience being stuck. At my next opportunity to work on the TSP exercise I fix my errors within 15 minutes and I am able to get the ATR and Lag numbers to match. I then proceed to work through the rest of the exercise and play around with it and think about the concepts.

I start working on the Support and Resistance (S&R) TSP exercise yesterday. After reading the instructions I feel a bit confused and overwhelmed. The execution price and position sizing aspects are not clear to me and I do not see how I am going to create this system in Excel. I decide to re-read the instructions to keep the big picture in mind and then to use my confusion as an indicator to proceed one step at a time.

When I get to the first step of the exercise, I get stuck as I do not know how to set up S&R lines that change dynamically based on input cells. But this time the stuck feeling is familiar to me and I use it as my ally. I stop looking at the computer for a moment and I say to myself, "I am OK being stuck". I wait a bit more and then sit back in my chair and repeat that phrase to myself. Once I get the feeling in my body that I am OK being stuck, I use the Help function in Excel and search online for some ideas. I see something online that triggers a thought about another resource and I consult a book. I then find the function that I am looking for and I start playing around with it until I get it right. Once it works, I feel very happy and I can visualize the next few steps of the exercise falling into place.

I realize that I have a new resource that is very useful for me. I no longer dread backtesting and I know that I can work through things if I get stuck.

Thank you for sharing your process and your inspirational example of how to deal with the "stuckies."



When We Become Willing

to experience resistance




Stuck-In Becomes Truckin'






Clip: http://www.wolftrucking.com/images/






Monday, October 26, 2009


Motivating Blame


In general, what is the feeling (s) people are unwilling experiment that motivates them to blame others?

Blame associates with using the causal model, with unwillingness to experience feelings and with denial that intentions = results.


In TTP we use the system model, develop willingness to experience our feelings and acknowledge that intentions = results; blame rarely comes up.


I do not claim that any one feeling "is to blame" for motivating blame; any one of them you are unwilling to feel seems to work.



The Blamer, In Pointing at Someone


generally points three fingers

back at himself





Clip: http://static.squidoo.com/resize/



Monday, October 26, 2009


Thinking of Moving Offshore

Mr. Seykota,

I realize that you've probably received hundreds, perhaps thousands of letters of admiration, and I've never been impressed by celebrity but, based on everything I've read about you, I have to say; "thanks for the no bulls*** approach to life & trading"!

I started a lawn business at the of thirteen in [City] when my father was an unemployed union truck driver.  I would loan him money to feed the rest of the family. Obviously, it was a dysfunctional childhood and any garden variety ivy league demographic study would suggest that under those circumstances I would live in a double wide with a domestic piece of c*** sitting on blocks in my front yard ... but anomalies happen!

Now I'm 49 and my asset protection attorney is telling me to buy dual citizenship and expatriate. Our country is turning into the country our grandparents left seeking freedom.  Sorry for the long story but do you deal with questions regarding our invasive government and offshore trading?

Thank you for sharing your process.


You might consider taking your feelings about <invasive governance> to Tribe.



Sunday, October 25, 2009


Amazing Transformation


Dear Ed,


I would like to share an amazing transformation that has taken place in the past few days.  This exchange started before the workshop.


Here is the sequence of letters:


A letter from my Aunt, explaining her upset with a decision she made to not join me and a friend on a trip to see my father, who is ill.


Her Letter:


all you could see? Perhaps I give you too much credit that is exactly the problem you ( no one) sees it all they see only from their perspective . Unless someone gives them a different perspective.

RE: you
The way you did what you did this weekend was so [your mother]. I feel sorry for you. the good sweet hardworking part of you still has not learned how to handle the sneaky, self serving, cant delay gratification, don't care who you hurt, figure you'll make it up later - work em, part of you won out.


Its pitiful. It is a tough battle. you could have had it all, and felt good about yourself, if you dealt with it differently. We, who see from 30,000 feet, understand that a young woman feeling secure because she has a house, [a well paying] job, friends might want to run with a hot car. If you had played your cards right you could have had a much better time, and not hurt or disappointed anyone, You are so transparent; selling out for short term happiness at your age is a big disappointment.


But the thing that hurts the most is that you do not care who you hurt to get what you want. Its not going to work but your stubborn streak will probably pursue it for some time to come making you untrustworthy to those who love you.

I do not tell you this to hurt you, I tell this to the part of you we care about, because that is who we are routing for. The part of you we are routing for could have a nice car and take a friend to have a weekend off she deserves it. the sneaky part of you had to steal it at great expense unfortunately the cost is shared by that part and the sweet part. To not be told or not feel the consequences would only let the sneaky part think it was winning. So I tell the truth as I see it. You can dismiss it entirely as just my perspective or you can learn from it , absorb it, reflect and with honesty see what has happened and how it could have been better.

Whenever you are trying to decide which part of you is in control ask yourself are there any promises being broken if there are then the sneaky insecure little girl is running the show and its so obvious. perhaps there is a sense of excitement that goes along with it, like a drug feeling, some sort of high,

Precious gems have flaws they are not bad they are part of the character and do not diminish value.
Manufacturers flaws run deeper, like a fracture. These flaws devalue them ,most collectors do not want them in their collection.


Make a list of what is really important to you Truthfully set out what it takes to get those things. BE HONEST make right choices. last weekend involved several choices, you broke promises, you were not honest, you were not considerate, your actions were those of a short sighted conniving taker.

You are a precious gem, no longer 8 or 18, Know your worth make sure the only flaws you allow are of the first type.

My first response:


Thank you for sharing your feelings. You might consider reading the book called The Trading Tribe. You might find it useful in your quest for control


Her response:


Subject: Its your move

as a child you ran from mom to dad and if that did not work, to ran to grandparents, and if that did not work you ran to (Name).

At 2 you were promised a spanking and instead given laughter and a hug even though you deserved a smack.

When a child does not get to feel the consequences of their actions and always has a place to escape, it can make things tough since it robs them of the opportunities to learn

if this issue is not on your mind festering, a distraction, then you are a sociopath and I do not believe that is true, not for a minute You have too good a heart.

Come , speak your peace, or not, and be done with it.

its just that simple. Its mature, its mutually forgiving, it gets resolved end of story.

there is no way we will always agree but there are better ways to handle things than what just happened..

Both of us are a product of our upbringing, and that may set us up for struggles Maybe we cant get past that only time will tell.

My response:


Thank you for your letter and for sharing your thoughts and feelings.




Then the transformation takes place when I remove any threats from the response.  This is the email I receive from her.  Notice the love at the end.  My aunt has never used the word love with me before and her typical response when I say "I love you" is "okay, thank you".


Her response:

The timing of our struggle was terrible for both of us, but, you especially.

As usual, life seldom leaves little time for anything else.

I recognize your response as just a truce. A good move.

Your response was well thought out well put It was wise and timely. I hope it ended the distraction

I don’t think either of us wants to hurt the other. There is probably a tendency right now to seal off/ insulate. As for me, I will fight that since I think its bent, makes my jaw sore, and crushes love.

love. [name]

( I can see why I don't use the word love a lot sometimes it really sucks . At times I am tempted to do it the other way, throw it around all cheery and superficial, sacrifice honesty and the best interests of others just for my own sake. Such a style seems EASY but meaningless.

I could try to fake it for awhile, just as a form of time off.

Let me know when you want me, an aunt, to be me again, no hurry.

Our Father who are in heaven
They kingdom come Thy will be done
Forgive us our trespasses as we forgive those who trespass against us.

Thank you Ed for your sharing your wisdom.  Your assistance in the transformation is noted and appreciated.  I will keep updating as our relationship continues to evolve.

Thank you for sharing your process and this inspirational exchange of letters.



We Transform Others




By Changing How We View Them


and by how we treat them.














Clips: http://images.buddytv.com/articles/movies/





Saturday, October 24, 2009


US Dollar Humor

Dear Ed,


I thought you would like these:






Greenback has become a laughing stock. Perhaps a sign of near term bottoming out!

Humor might indicate some short-term congestion. Per major market turns, you might consider looking for deep and exquisite emotional abreaction appearing on the covers of news magazines.

Friday, October 23, 2009



Hi Ed,

Thanks for your great website!

Question: What are Your conclusions about "scaling" ("pyramiding", "de-pyramiding") in and/or out of positions?

The way I see it:

Optimal position size is pre-determined, depending on equity, volatility and risk aversion. The trade can then be done in 4 ways:

A) The position is put on, held and eventually stopped out.

(Recognizing how well a simple system can do suggests to me that keeping the algorithm simple is perhaps not wrong)

B) Increase if it goes in the money. Eventually everything is stopped out all at once

(My experience is that this is often the case in reality)

C) Enter all a once, decrease if it goes the wrong way

(Perhaps this is a better option than B)?)

D) Combine B and C

(A vague idea: In the case of the EA crossover system, perhaps the position could be scaled with the metric LagDiff = (Long Lag - Short Lag) could be used? => Position size scales proportional to LagDiff/ATR)

I am spending ridiculously much time thinking of which of these approaches A-D is the best, without ever reaching any conclusion. If you have any, I would be highly grateful for sharing it

You can answer your questions by back-testing.

Thursday, October 22, 2009


Recent Achievements

Dear Ed,

Please find below my recent achievements and current focus topics:

*) I have increased the asset under management to XXM$

*) I am working on Von Mises business cycle model. I am considering adding demand of money and potentially more to a more detailed model.

*) I am half a way through "The theory of Money and Credit".

*) I commit myself to use positive definitions to concepts instead of negative (e.g. It doesn’t exist). I find out that it works better.

For example I recall saying: “Time doesn’t exist”, however now I prefer something like: “Time is nature's way of keeping everything happening Now”.

*) I start to track, monitor and measure my physical activity (e.g. doing sports or going to the gym). I find I have been a bit lazy recently.


Wednesday, October 21, 2009



See Previous

Hello Mr. Ed

Thanks for your reply.

1. I agree with the thought that it might not possible to know the difference between a regular and trivial thought

2. Okay. Thanks for the advice.

3. My understanding of those 'labels' is like this:
Ritualistic: adhering to ritualism (exaggerated emphasis on the importance of rites or ritualistic forms in worship)

Agnostic: A person who doubts truth of religion, a person who believes that it is impossible to know whether God exists

Spirituality: Something concerning with the intellect or what is often thought of as the better or higher part of mind. It may be termed as an ideal that reckons all reality in essence as spiritual. Or simply stated spirituality is one's character or quality that makes one transcend the barriers of worldliness, caste, creed and sensuality; and realize one's connection with the Truth.

By the way, I wish a very happy diwali to you Ed and all FAQ readers. There's so much to learn on this forum.


Wednesday, October 21, 2009


The Kings Firecrackers Jump Rope (a re-run)


Dear Ed,



Thank you for the clip.

Wednesday, October 21, 2009


Ready and Willing

Dear Ed,

A significant change I am ready and willing to make my life:

The change I am ready and willing to make to my life is to give up my methods for avoiding situations that might lead to either the risk of loss, or the risk of being seen to be stupid or a failure. These are not necessarily financial risks but could also be situations in my family life or career.

The typical pattern I notice is that when I have to address a situation that might led to a loss or failure, I delay tackling it and quite often involve myself instead in other situations that I can control or cannot be blamed for them not succeeding. This is not all negative (I am a good problem solver and resource for other people who need help) but it means I do not achieve everything that is within my potential and I am prone to procrastination. Now that I acknowledge these feelings I wonder if I trade in order to avoid dealing with feelings that arise at work but lately I also wonder if I use work as a way of not putting more commitment into my trading.

Reading FAQ, attending the [City] Tribe and some DIM work has allowed me acknowledge these feelings and I have already noticed some progress and I hope that by taking them to the workshop I will accelerate my progress as well as possibly reveal other unresolved feelings and rocks.

Looking forward to the next few days enormously!

Thank you for confirming your willingness.

Wednesday, October 21, 2009

Voice From Two Millennia Ago

Dear Ed,


The quote below allegedly made by Marcus Tullius Cicero began circulating on the Internet in October, 2008. It is based on a true statement from Cicero,
the great Roman orator:

The actual quote is: "The arrogance of officialdom should be tempered and controlled, and assistance to foreign hands should be curtailed, lest Rome fall." -- Cicero, 55 B.C.


Back to the future